Summary Bullets:

• Sparkle has teamed up with VDPC and private equity firm Teset Capital will build the Barracuda Subsea Cable, a high-capacity subsea cable connecting Spain to Italy.

• Sparkle will acquire the Valencia-Genoa infrastructure and Valencia co-location, boosting its connectivity across the Iberian Peninsula.

In today’s interconnected world, subsea cables are the unseen arteries that power global communications with underwater cables carrying approximately 99% of the world’s internet traffic across continents. As operators collaborate to expand their network infrastructure, the recent announcement between wholesale network provider, Sparkle and Spanish telecommunications provider, Valencia Digital Port Connect (VDPC) highlights how strategic collaborations between infrastructure players continue to shape the future of digital connectivity. But as ownership of Sparkle is about to change, could this influence its long-term role in global infrastructure?

Sparkle has teamed up with VDPC and private equity firm Teset Capital to establish a high-capacity, low latency subsea cable connecting Valencia, Spain to Genoa, Italy. Designed with an “open cable system” architecture, the Barracuda subsea cable project will feature 12 fiber pairs each capable of 32 Tbps. The project has an estimated total investment of EUR100 million and is scheduled to be ready for service early in 2028.

This agreement goes beyond a fiber link; it’s how telecom operators can work together to unlock the value of network infrastructure. By choosing Sparkle’s Genoa Landing platform rather than building its own infrastructure, VDPC gains immediate access to major European interconnection hubs including terrestrial networks and internet exchange points already present at the Genoa Data Exchange in Lagaccio. This provides the carrier with multiple benefits while removing the regulatory obstacles that it could encounter if it chose to develop its own landing infrastructure from scratch.

For Sparkle, the benefits flow in both directions. Under the broader agreement, Sparkle will acquire the infrastructure assets on the Barracuda cable and colocation space at the Valencia Cable Landing Station designed to support Barracuda and future subsea cable systems. The acquisition will enhance Sparkle’s reach into the Iberian peninsula, strengthening its footprint into key Mediterranean markets and extending connectivity opportunities into the emerging West African region.

What makes this collaboration especially compelling is not just the technology itself, but how clearly it signals a broader shift in the industry’s direction. Sparkle is currently undergoing a significant transformation as a part of a larger corporate restructure as Telecom Italia (TIM) divests its wholesale business unit (Sparkle) to a consortium being led by Italy’s Ministry of Economy and Finance (MEF) who will hold a 70% majority stake in the company with the remaining stake to be held by infrastructure firm, Retelit (backed by Spanish infrastructure fund, Asterion). The deal has yet to be fully finalized and was originally expected to close by late 2025. This move reflects a strategic effort by the Italian government to maintain influence over critical digital infrastructure while unlocking investment and focus for Sparkle’s future growth (read more about the divestment TIM Offloads Sparkle as the Italian Government Looks to Keep Ownership in a 70% “Strategic” Stake.

Seen in this light, the Barracuda landing isn’t just another cable deal, it’s a sign of confidence in Sparkle’s role in the region while positioning its Genoa infrastructure as a digital gateway for Europe and beyond. For VDPC, the partnership validates the strategic value of the Barracuda subsea cable system and the Valencia Cable Landing Station and could become more attractive to other international partners.

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